Page 27 - Homeowners Manual - San Antonio, Texas

Commitment for Title Insurance

COMMITMENT FOR TITLE INSURANCES — SOME BASICS
After months of searching, you’ve finally found it: your perfect dream home� But is it perfect? Will you be
purchasing more than just a beautiful home? Will you also be acquiring liens placed on the property by prior
owners? Have documents been recorded that will restrict your use of the property?

The commitment for title insurance will provide you with the opportunity, prior to purchase, to review matters
affecting your property which will be excluded from coverage under your title insurance policy unless removed
or eliminated before your purchase�

What is a commitment for title insurance?

A commitment for title insurance is a report prepared prior to issuing a policy of title insurance that shows the
ownership of a specific parcel of land, together with the liens and encumbrances thereon which will not be
covered under a subsequent title insurance policy�

What role does a commitment for title insurance play in the real estate process?

A commitment for title insurance contains the conditions under which the title company will issue a particular
type of title insurance policy�

The commitment for title insurance lists, in advance of purchase, title defects, liens and encumbrances which
would be excluded from coverage if the requested title insurance policy were to be issued as of the date of the
commitment for title insurance� The report may then be reviewed and discussed by the parties to a real estate
transaction and their agents�

Thus, a commitment for title insurance provides the opportunity to seek the removal of items referenced in the
report which are objectionable to the buyer prior to purchase�

When and how is the commitment for title insurance produced?

Shortly after escrow is opened, an order will be placed with the title company which will then begin the process
involved in producing the report�

This process calls for the assembly and review of certain recorded matters relative to both the property and the
parties to the transaction� Examples of recorded matters include a deed of trust recorded against the property or
a lien recorded against the buyer or seller for an unpaid court award or unpaid taxes�

These recorded matters are listed numerically as “exceptions” in the commitment for title insurance� They will
remain exceptions from title insurance coverage unless eliminated or released prior to the transfer of title�

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